Cebu Air passenger traffic rises as seat occupancy slips on faster capacity growth

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Cebu Air passenger traffic rise

Highlights

Cebu Pacific passenger traffic rose 4.1% to 20.77 million in January–September, but seat capacity outpaced this, up 7.6% to 25.30 million.
Seat load factor dipped 2.7 percentage points to 82.1% as international passenger volume fell 5.1% in September, while domestic traffic climbed 7.4%.
Cebu Air reported a second-quarter net loss of P5.49 billion versus net income of P8.51 billion last year; shares fell 1.7% to P23.10.

Traffic growth and capacity mix in 2026

As reported by BusinessWorld, citing Cebu Air, Inc., passenger traffic for Cebu Pacific rose 4.1% to 20.77 million in the January-to-September period from 19.95 million a year earlier. Available seat capacity increased faster, up 7.6% to 25.30 million from 23.52 million, pushing the carrier’s seat load factor down 2.7 percentage points to 82.1% from 84.8%.

Domestic passengers reached 15.7 million during the first nine months, while international traffic stood at 5.06 million. For September alone, total passenger traffic grew 4.4% to 1.91 million from 1.83 million, with domestic traffic rising 7.4% to 1.48 million and international passenger volume falling 5.1% to 424,000 from 446,000.

Even with the drop in international traffic in September, Cebu Pacific’s overall seat load factor for the month improved to 83.5% from 81.1% a year earlier, indicating stronger seat occupancy during the period.

Fuel costs and market impact

Alexander G. Lao, Cebu Pacific president and chief commercial officer, says demand remains encouraging across the domestic network, particularly on key trunk routes, even though September is traditionally a lean travel month in the Philippines. He says the airline is managing international capacity selectively in response to elevated fuel prices and will keep a disciplined approach to matching capacity with demand ahead of the holiday season.

The traffic update comes after Cebu Air earlier reported a second-quarter attributable net loss of P5.49 billion, reversing attributable net income of P8.51 billion in the same period last year, as expenses outpaced revenue growth. At the local bourse on Thursday, Cebu Air shares fell 1.7%, or 40 centavos, to P23.10 apiece.

Our earlier report on the spike in crude oil shipping costs detailed how conflict-related risks are driving tanker rates and insurance higher, making freight a much larger share of the delivered oil price. We noted that import-dependent markets such as the Philippines could face higher fuel costs that ripple into consumer prices as long as key routes remain disrupted and risk premiums stay elevated.

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